Incorporation of law firms to become Limited Companies

Armstrong Watson has helped a large number of law firms incorporate their practices. We will help you decide if incorporating is the right decision for you, and if you decide to proceed, we'll manage the process from end-to-end, ensuring a smooth and seamless transition.

We will agree fees for each stage of the process in advance.

Initial face to face assessment meeting to consider the implications and benefits of incorporation. Assistance with decision to convert.
Bespoke calculations to determine the potential tax implications.
Attendance at planning meeting to provide our 12 page incorporation checklist that details every task that needs to be undertaken; to allocate those tasks to specific people at the law firm or at Armstrong Watson; and to set deadlines for those tasks to be completed.
Provision of a soft copy of the checklist, updated by Armstrong Watson on a monthly basis with accompanying notes of tasks that are required to be completed in the following month.
The following are usually carried out, but are subject to the allocation of tasks in the planning meeting.
Provision of the SRA application forms for the company to become a recognised body, with suggestions on how to complete the forms.
Creation of the company.
Review of the SRA forms prior to submission to the SRA.
Preparation, or review, of integrated financial forecasts and business plan prior to submission to the SRA.
Preparation of a detailed bespoke goodwill valuation report and agreement of the goodwill valuation with HMRC via form GC34.
Meeting to assist with terms to be included within the shareholders' agreement. Suggestion of, and subsequent working alongside, corporate lawyers to prepare the shareholders' agreement, business transfer agreement and articles. Key items to consider will be share valuation mechanisms and also who will acquire the shares of retiring owners - usually the company or other shareholders; and how shares will be allocated to new owners and at what cost.

Contact our Legal Sector Partner, Andy Poole, on 07828 857830 or andy.poole@armstrongwatson.co.uk to discuss how we can help you.

What is it?

A managed service to convert law firms to Limited Companies.

Who is it for?

Sole practitioners, partnerships or LLPs of all sizes in all locations.

What are the benefits for your firm?

Reduction of risk
Potential tax efficiencies
Future proofing your business

What do I have to do?

Attend two hour assessment meeting, two hour planning meeting, one hour shareholders' agreement meeting. Provide information to us as requested and regular updates to your Partners. Action points from the planning meeting.

What are the deliverables?

Incorporation of your law firm (see the detailed process above).

What is the cost?

We would provide a specific fee proposal which can be tailored to your needs.

Our experience

Armstrong Watson has helped, a large number of law firms to incorporate their practices, providing us with experience and knowledge of the process and potential pitfalls to avoid.

CASE STUDY

The goodwill in one of those was valued at £300,000 for a two partner practice, initially saving £45,000 in tax between the two partners. Ongoing annual tax savings are expected to amount to £15,000 per partner.